At the beginning of 2011, Trichet Inc.purchased a 27% stake in the ordinary shares of Papandreou Company at a cost of €4,000,000.After applying the equity method, the Investment in Papandreou account has a balance of €4,020,000.At December 31, 2011 the fair value of the investment is €4,130,000.Which of the following values is acceptable for Trichet to report for the investment in its December 31, 2011 statement of financial position?
1. $ € 4,000,000 $
II. $ \in 4,020,000 $
III. $ € 4,130,000 $

Question

At the beginning of 2011, Trichet Inc.purchased a 27% stake in the ordinary shares of Papandreou Company at a cost of €4,000,000.After applying the equity method, the Investment in Papandreou account has a balance of €4,020,000.At December 31, 2011 the fair value of the investment is €4,130,000.Which of the following values is acceptable for Trichet to report for the investment in its December 31, 2011 statement of financial position? 
1. $ € 4,000,000 $
II. $ \in 4,020,000 $
III. $ € 4,130,000 $

Quizplus · Accepted Answer

The Answer of At the beginning of 2011, Trichet Inc.purchased a 27% stake in the ordinary shares of Papandreou Company at a cost of €4,000,000.After applying the equity method, the Investment in Papandreou account has a balance of €4,020,000.At December 31, 2011 the fair value of the investment is €4,130,000.Which of the following values is acceptable for Trichet to report for the investment in its December 31, 2011 statement of financial position? 
1. $ € 4,000,000 $
II. $ \in 4,020,000 $
III. $ € 4,130,000 $

At the Beginning of 2011, Trichet Inc €4,000,000 € 4,000,000 €4,000,000

At the Beginning of 2011, Trichet Inc $€ 4,000,000$